Value of home is held down by other homes in the area describes which concept?

• A. Reconciliation
• B. Progression
• C. Regression
• D. Physical Deterioration

Answer: (C)

Regression is the idea that a property's value can be pulled down when it sits among nearby homes of lower value. When a higher-valued home is in a neighborhood with less expensive houses, buyers don’t pay as much as the property might otherwise command, so its value regresses toward the neighborhood average. This contrasts with progression, where a lesser property benefits from being in a higher-valued area. Reconciliation and physical deterioration relate to other appraisal concepts: reconciliation blends values from different approaches, and physical deterioration refers to wear or obsolescence reducing value.